The Chinese manufacturing is in the doldrums – tenth consecutive month of bad news.
It does not look good.
Everyone must be questioning – when global trade will stop sinking.
I can answer that – when Countries tackle the high level of debt.
The question is though – will China start the annual currency wars in an attempt to arrest the continued decline?
One must recognize that the immediate tool of all Central Banks is to manipulate their currencies.
What goes up – should go down.
If the Yuan was floated I know how low it would go.
So – I expect China to devalue.
Then we watch Vietnam, Korea and Japan.